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ThredUp (TDUP) Q2 Loss Narrower, Revenues Up Y/Y, Stock Up
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Shares of ThredUp Inc. (TDUP - Free Report) jumped nearly 7% in after-hours trading on Aug 10 following its announcement of better-than-expected results for second-quarter 2021. The company posted a narrower-than-anticipated loss per share. Also, it delivered impressive top-line results.
The company reported all-time high active buyers and orders for the reported quarter. For the trailing 12 months, active buyers rose 8% to 1.34 million while orders increased 22% to 1.22 million. Management remains on track with the company’s international expansion strategy. The industry player continues to create new resale programs, powered by Resale-as-a-Service (RaaS) with several consumer brands.
Q2 Details
The company posted an adjusted loss per share of 12 cents, narrower than the Zacks Consensus Estimate of a loss of 14 cents. On a GAAP basis, the company reported a loss of 15 cents a share including stock-based compensation expense.
Total revenues of $60 million came above the Zacks Consensus Estimate of $57 million. The top line also increased 27% year over year, buoyed by higher consignment revenues. Consignment revenues surged 39.3% to $48.6 million while Product revenues fell 8.1% to $11.4 million. Active buyers soared 71% in the second quarter.
Gross profit increased roughly 34% year over year to $44.1 million, backed by higher sales. Also, gross margin expanded 390 basis points (bps) year over year and 230 bps, sequentially, to 73.6%. Scaling and higher automation across the company’s distribution centers (DCs) along with the closure of its last manual DC drove gross margin.
Operating loss was $13.9 million compared with $6.5 million loss in the comparable quarter last year. Adjusted EBITDA came in at a loss of $9 million in the second quarter compared with the adjusted EBITDA loss of $3.3 million in the year-ago quarter.
Business Highlights
ThredUp looks to strengthen its international expansion strategy through the planned acquisition of Remix, which is among the Europe’s key fashion resale companies. This buyout is expected to accelerate the company’s international growth plans in the continent.
Management plans to invest in Remix product offerings, processing infrastructure and go-to-market strategy to drive the company’s marketplace growth.
Recently, ThredUp declared RaaS agreements with Madewell, Farfetch, LG, Fabletics and Vera Bradley. The latest RaaS deals highlight the company’s ability to deliver resale at scale for premium brands.
Other Financials
This presently Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $173.1 million, long-term debt of $31.4 million and total shareholders’ equity of $180.8 million.
Cash used by operating activities was $9.1 million during the first six months ended Jun 30, 2021.
Guidance
Management stated that third-quarter 2021 as well as full-year outlook is not pro forma for the Remix acquisition. This buyout is likely to close in the fourth quarter of 2021.
For the third quarter, ThredUP projects revenues in the bracket of $60-$62 million. It expects a gross margin of 71.5-72.5% and an adjusted EBITDA margin loss of 19-17%.
For 2021, management forecasts revenues in the range of $236-$241 million. It envisions a gross margin of 71.5-72.5% and an adjusted EBITDA margin loss of 16-14.5%.
Price Performance
Shares of this leading online resale retailer have increased 11% in the past three months compared with the industry’s 2.8% growth.
Image: Bigstock
ThredUp (TDUP) Q2 Loss Narrower, Revenues Up Y/Y, Stock Up
Shares of ThredUp Inc. (TDUP - Free Report) jumped nearly 7% in after-hours trading on Aug 10 following its announcement of better-than-expected results for second-quarter 2021. The company posted a narrower-than-anticipated loss per share. Also, it delivered impressive top-line results.
The company reported all-time high active buyers and orders for the reported quarter. For the trailing 12 months, active buyers rose 8% to 1.34 million while orders increased 22% to 1.22 million. Management remains on track with the company’s international expansion strategy. The industry player continues to create new resale programs, powered by Resale-as-a-Service (RaaS) with several consumer brands.
Q2 Details
The company posted an adjusted loss per share of 12 cents, narrower than the Zacks Consensus Estimate of a loss of 14 cents. On a GAAP basis, the company reported a loss of 15 cents a share including stock-based compensation expense.
Total revenues of $60 million came above the Zacks Consensus Estimate of $57 million. The top line also increased 27% year over year, buoyed by higher consignment revenues. Consignment revenues surged 39.3% to $48.6 million while Product revenues fell 8.1% to $11.4 million. Active buyers soared 71% in the second quarter.
Gross profit increased roughly 34% year over year to $44.1 million, backed by higher sales. Also, gross margin expanded 390 basis points (bps) year over year and 230 bps, sequentially, to 73.6%. Scaling and higher automation across the company’s distribution centers (DCs) along with the closure of its last manual DC drove gross margin.
Operating loss was $13.9 million compared with $6.5 million loss in the comparable quarter last year. Adjusted EBITDA came in at a loss of $9 million in the second quarter compared with the adjusted EBITDA loss of $3.3 million in the year-ago quarter.
Business Highlights
ThredUp looks to strengthen its international expansion strategy through the planned acquisition of Remix, which is among the Europe’s key fashion resale companies. This buyout is expected to accelerate the company’s international growth plans in the continent.
Management plans to invest in Remix product offerings, processing infrastructure and go-to-market strategy to drive the company’s marketplace growth.
Recently, ThredUp declared RaaS agreements with Madewell, Farfetch, LG, Fabletics and Vera Bradley. The latest RaaS deals highlight the company’s ability to deliver resale at scale for premium brands.
Other Financials
This presently Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $173.1 million, long-term debt of $31.4 million and total shareholders’ equity of $180.8 million.
Cash used by operating activities was $9.1 million during the first six months ended Jun 30, 2021.
Guidance
Management stated that third-quarter 2021 as well as full-year outlook is not pro forma for the Remix acquisition. This buyout is likely to close in the fourth quarter of 2021.
For the third quarter, ThredUP projects revenues in the bracket of $60-$62 million. It expects a gross margin of 71.5-72.5% and an adjusted EBITDA margin loss of 19-17%.
For 2021, management forecasts revenues in the range of $236-$241 million. It envisions a gross margin of 71.5-72.5% and an adjusted EBITDA margin loss of 16-14.5%.
Price Performance
Shares of this leading online resale retailer have increased 11% in the past three months compared with the industry’s 2.8% growth.
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